On July 9, 2024 the Administrative Court of Cyprus (Full Court) issued its much expected judgment on the question of whether acts of the Cyprus government that relate to the applications of a number of foreign investors to apply for naturalisation by exception can be the subject matter of assessment by the Court.

Thousands of recourses were filed before the Cyprus Administrative Court by foreign investors against the Cyprus government and in particular the Council of Ministers and the Ministry of Interior, following rejections to naturalisation applications submitted in the context of the Cyprus Citizenship Program (repealed by decision of the Council of Ministers dated October 13, 2020) or denial to receive or assess such applications or even, revocations of citizenship status granted.

The Cyprus government raised a preliminary opposition that the Court lacks jurisdiction to assess these cases because the Cyprus Citizenship Program itself and the naturalisation of foreign investors and their family members fall within the context of exercise of political power and financial policies as a means of support of the Cyprus economy. The argument raised was that such decisions shall be seen as governmental acts (the so-called “actes de gouvernment”) or as an expression of political will with which the Courts cannot interfere.

The matter was led to a hearing with the Court accepting the investors’ positions that such acts can be duly seen as acts of administration and shall be judicially assessed on their merits.

The Court noted in particular the differentiation between the “honorary naturalization” and the “naturalisation by exception of foreign investors and family members” provided in the relevant Law, adding that for the category in issue, i.e. the second category, particular regulations for the establishment of specific criteria were issued by the Council of Ministers from time to time which created a particular context of assessment of applications.  The Court went further to note that the fact alone that the decisions were made by the Council of Ministers does not disqualify them from judicial assessment, as such outcome would lead to abusive or arbitrary results.

Thus, it now became established precedent that governmental decisions taken in this context cannot and have not been added in the caselaw “category” of governmental acts.

The judgment marks a successful first outcome for the applicants as the Administrative Court has declared its jurisdiction over the cases pending which have now been put forward for a full assessment.

Our firm represents a number of clients who were denied the citizenship status and has proudly participated in the proceedings for the issuance of the judgment discussed above.

The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Constantina Zantira, Partner at Limassol office, Tel +357 25363685 or email constantina.zantira@kyprianou.com.